CBN Data Localisation Order Wins Fintech Support, But Founders Sound Cost Alarm
Nigerian fintech founders are largely in support of the Central Bank of Nigeria’s new CBN data localisation directive, but they are warning that the country’s infrastructure gaps could turn a sound policy into a costly headache.
The CBN has ordered banks, fintechs, and other financial institutions to store payment data within Nigeria by January 2027. The goal is straightforward: tighter oversight and full Nigerian jurisdiction over sensitive financial information. But as the deadline edges closer, founders say the bigger question isn’t whether the policy makes sense, it’s whether local data centres can actually carry the weight.
Chibueze Damian, founder and CEO of Paymita, admits his first reaction to the CBN data localisation order was concern rather than celebration. He says Nigeria’s data centre ecosystem is still maturing and may not yet match the scale, redundancy, and cost efficiency that global cloud providers offer. For a fintech, where uptime is everything, that gap matters. Still, he sees a silver lining, if the policy pulls in sustained investment, it could strengthen Nigeria’s digital backbone over time.
Roosevelt Elias, founder and CEO of Payble, takes a firmer stance. He argues this isn’t really a new policy at all, the CBN has signalled its intent for years, and what’s changed is enforcement. He points to a striking number: Nigeria reportedly loses about $850 million annually in cloud revenue to foreign providers, money that ends up funding data centres in Ireland and Virginia instead of Lagos.
Elias also flags a deeper issue the policy alone won’t fix, fragmented transaction records scattered across poorly reconciled systems. According to him, plenty of businesses move real volume but remain invisible to lenders simply because their financial history never coheres into something a bank can read. Geography, he says, isn’t the whole solution; standardised data formats and API-level regulatory access matter just as much.
Both founders agree compliance costs are coming. Damian expects fintechs to rework hosting arrangements and data architecture ahead of the deadline. Elias is less worried about the migration itself, domestic data centre capacity is already growing, and more concerned about the recurring compliance audit trail, which could become a permanent cost burden, especially for smaller players without dedicated compliance teams.
Power supply remains the sharpest risk. Elias notes that Nigerian data centres currently lean on diesel backup that can eat up to 40% of operating costs. Whether the next two years bring real infrastructure upgrades or just higher bills for operators, he says, will determine if the policy truly delivers.
With January 2027 approaching, financial institutions are already adjusting. The real test now is whether Nigeria’s infrastructure can catch up in time to match the ambition behind the directive.
